New Zealand: Local Government Focus Required

New Zealand: Local Government Focus
Required

New Prime Minister Hon John Key (NZ Herald article) of the National Party
led Government is strongly of the view that New Zealand’s
problems centre around a lack of growth. His Deputy Bill
English endorses this call for growth – viewing this as a
necessary condition to attract New Zealanders, who were
driven from their home country, because it failed to offer
them reasonable opportunities.

For years – New Zealand
has been a “railway station” where around 2% (around
80,000 of 4.3 million) of its population departs annually
(Australia in the main) to be replaced by others. Too many
of the “others” then use New Zealand as a convenient
“pit stop” on their journey to settle permanently in
Australia.

Australia is tackling the difficulties within
the state and local government sectors – with the State
Labour Government of Victoria leading the way. In March –
fringe urban land was released in Melbourne capable of taking
90,000 housing lots (enough for 243,000 people) –and
recently 22,000 lots at Geelong and a further release of 134,000 lots on the outskirts
of Melbourne. To date this year – 246,000 lots at an
estimated 2.7 people per household – capable of
accommodating an additional 664,200 people (roughly the
number of New Zealanders currently living overseas). The
industry groups in Australia – such as the Housing
Industry Association, Urban Development Institute, Property
Council and Master Builders (this release “Planning reforms playing
around with the edges” of the Master Builders of Victoria
as an example) are committed to working with Governments at
all levels in addressing these issues.

Understandably –
people and businesses from New Zealand and the other States
of Australia are flocking to the State of Victoria and the
dynamic city of Melbourne – where they can acquire starter
homes on the fringe of Melbourne for between $A230,000 and
$A260,000. These people strive to live decent lives –
where they don’t have to be “bubble bunnies” and
“mortgage slaves” –as they are currently being forced
to be in other Australian States and New Zealand. Simply
because these other jurisdictions have been slow to figure
out, how to “allow” affordable housing to be
built.

“The Wasted Nine Years”would sadly sum up the
performance of the previous New Zealand Labour led
Government – which only succeeded in allowing a phony boom
based on a housing bubble to take place. What is referred to
as the “Cullen Bubble” – where through
political failure at both Central and Local level – Kiwis
were encouraged to flick houses to each other, has
understandably ended in tears, as these unnecessary bubbles
are currently bursting.

Key and English- with the support
of Stephen Joyce - Infrastructure, Rodney Hide – Local
Government, Phil Heatley – Housing, Maurice Williamson –
Building and Nick Smith – Environment, will be the
ministerial team required to lead New Zealand back to sound
local governance and sustainable growth.

New Zealand did
not have to have these unnecessary housing bubbles – if
there had been responsible governance and management at
Central and Local Government level – and the intent of the
environmental effects based Resource Management Act 1991
(replacing the Town & Country Planning Act) had been
followed. Instead –for “patch protection” reasons in
the main and the support of the previous government –
local government - with other protectionist groups and
poorly trained professionals, chose to fight it all the way.
The appropriate structures were never set up to deal with
the “protectionist antics” that should have been
foreseen.

Following the election November 8, the new Prime
Minister John Key with commendable skill, quickly drew the
ACT and Maori Party’s in to form a coalition government
and appears to have allocated ministerial portfolios wisely.

John Key – as yet - does not appear to
have acquired the “policy development” skills of his
predecessor and “savior” of the National Party, Dr Don
Brash. He needs to develop these skills with urgency – and
is more than capable of doing so.

The National Party
policy statements could be described as a suite of “noble
intentions” - at best.

It takes time for a new
Government – and particularly a coalition government –
to settle in. And a Government where there is a lack of
policy coherence and clarity. These problems are compounded
when new and untested ministers such as Heatley with
Housing, go off on a tangent making public statements, such
as within this article - Death of home buyers' dream - 30 Nov 2008 -
NZ Herald: New Zealand National news –

“Housing
Minister Phil Heatley said yesterday the key to making
housing affordable was increasing take - home pay through
tax cuts and reduced interest rates”.

These are
simply inaccurate and diversionary “weasel words” –
particularly when the journalist Rachel Grunwell of the NZ
Herald within the preceding paragraph stated
–

“National claimed affordable housing as one of
its key election promises. John Keys plans included personal
tax cuts, keeping interest rates down (he’s obviously
suffering from the “Howard disease” thinking he’s
Reserve Bank Governor as well), allowing State house
dwellers to buy their homes, reforming development rules to
free up land and changing building regulations.”

Hon
Phil Heatley – as the new Housing Minister - has had many
years to study these issues in depth, which included an
intensive United States and United Kingdom Study Tour. He
initiated and participated in the previous Governments
Commerce Committee Housing Affordability Inquiry as well. It
was the New Zealand planners who “led the charge” (my response) in recognizing there were
problems that needed to be dealt with in early 2007, which
then in turn was followed up by the National Party with the
Inquiry, comprehensive speeches by John Key during August
2007 to the NZ Contractors and National Party. I
subsequently commended them for their efforts.

Thankfully – Rt Hon John Key has a light portfolio load
with Tourism – and will have the time to monitor closely
“ministerial performance” – assist where necessary
–and replace non performers quickly.

There is obviously
an urgent need for the new coalition government to develop a
comprehensive and workable approach in dealing with the
difficulties local government faces, in consultation with
those with a successful track record and deep understanding
of these issues. Then –with the responsible leaders of the
local government sector – work together in finding
“workable solutions” to these issues.

After all –
New Zealand in terms of population is tiny, with just 4.3
million people. Its economy is small too – just one third
of that of Dallas Fort Worth or Houston – or roughly the
size of the State of Iowa or the city of Pittsburg in the
United States. And it is extremely fortunate in having
relatively simple governmental structures and an electorate
that clearly told politicians November 8, that they now want
to see
“performance”.

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